Bank-sponsored programs for children: ideas for getting started.

Despite the effort of many banks, the 1997 American Bankers Association Consumer Tracking Survey indicated that consumers generally do not believe that banks care about their communities. The survey also showed that primary users of banks were not as satisfied with their banking relationships as they were in 1994. (ABA Banking Journal, Supplement, November 1997.) Since banks are facing increased competition from nonbanks and credit unions, it might be a good idea to start turning these negatives into positives.

Many banks are doing just that by sponsoring a number of projects to help school children. Reaching out to schoolchildren could be a good way for banks to build long-term relationships with children and parents. The U.S. savings rate is below 4 percent, which is far below the worldwide average. Therefore, teaching children to save at an early age is a good idea because when these children become adults, banks will have ready-made customers. Children participating in some of the bank programs nationwide learn practical money management skills and the money-lending process. Some even get to participate in mock job interviews. (Bankers News, November 7, 1995)

Banks that lead the way

In July 1994, KeyCorp's Society Bank created a very successful program in the Great Lakes region. Children opened accounts with a deposit of $10 and joined the bank's DinoSavers club. The dub allows the children to collect miniature dinosaurs and stickers and they receive a newsletter filled with facts about dinosaurs, puzzles and recipes. KeyCorp also created a Children's Advisory Council, consisting of eight to 10 children, that provided feedback on planned activities and programs. The children participated in press conferences to discuss the program, which was also featured in local newspapers. (Bank Marketing, February 1995)

Teaming up with the school system worked well for Berrien Teachers Credit Union, St. Joseph, Mich., which sponsored branches in schools staffed by students. Children in each class were assigned jobs, such as accepting deposits or creating advertising promotions. Students also toured the credit union to see the real operations of a financial institution. Employees spent up to two hours per week at their assigned schools, helped out by parents and teachers. (Deposit Growth Strategies, September 1997)